While talking about blockchain-based businesses, one cannot explicitly ignore Initial Coin Offerings(ICO). As blockchain is set on a mission to revolutionize every single major industry, Initial Coin Offerings serve as an ultimate approach for blockchain-related startups & ventures to raise funds for their business.
When it comes to blockchain, there are numerous business perceptions available for startups to reap profits. One such popular crypto-based business is launching a cryptocurrency crowdfunding platform. Crypto crowdfunding is executed using the three most common types viz., ICO, IEO, and STO. Among the mentioned methods, ICO is the simplest way to raise capital through launching a new cryptocurrency token. The ICO method is implemented by multiple ventures across the globe for crowdfunding their cryptocurrency projects.
Overview of an ICO:
Initial Coin Offering is a fairly common process where potential investors are issued with tokens/coins at a considerably discounted price in return for their investment. ICOs are carried out by the token creator to boost capital for their business. In case if the ICOs do exceptionally well in the crypto market and are praised in value, the investors will be rewarded with profits. Initial Coin Offering, for most part, is highly unregulated and there are no third parties involved or associated with an ICO.
In addition to that, the investors are not bound to pay anything in return from what they have earned during the ICO event. Recent times have witnessed many successful ICO projects which are extremely prominent. ICO has revolutionized itself and has become one of the blockchain based services that do not need any introduction and has evolved as one of the most preferred methods for raising capital currently. The level of growth attained by ICOs are due to the varied benefits that come along while integrating them. They are:
Decentralization: Any and all kinds of ICO platforms are completely decentralized and are explicitly available to everyone across the globe. ICO(initial coin offering), other than asking investors to transfer funds within the expected time, does not involve any kind of constraints.
Liquidity: The shortage of liquidity is a common issue faced by the investors of traditional businesses, unlike ICO. ICO investors are blessed with the advantage of getting high-volume liquidity & real-time price values that aid them with an enhanced buying and selling process.
Transparency: ICO enables the customers to invest from anywhere in the world at any time they wish to do it. ICOs are capable of providing added flexibility as well as transparency compared to the conventional crowdfunding systems. ICOs do not inherit any early investors who do not have any close connection with the business founder.
Cost variant: The values of ICO tokens will vary from business to business and it enables customers to expand their venture and profit earning opportunities. Initial Coin Offering enables the participation of a large group of investors for facilitating million dollar projects.
Risk elimination: ICOs eliminate the involvement of third parties. This in turn reduces risks or fraudulent activities and helps customers to raise funds in an efficient, secure, and hassle free manner. With the absence of a third-party, ICO is considered a risk-free crowdfunding method.
The above mentioned are some of the core benefits of carrying out crowdfunding through the ICO process. It doesn’t matter what type of business stream, the cost associated with capital investment should be considered before starting with the business.
Factors influencing ICO pricing:
The process of launching or creating an ICO will be based on some primary factors. These are some of the essential factors to be considered before beginning with an ICO event. They are:
Complexity of the project: The entire cost of executing an ICO event will be primarily based on the complexity of the project. It is a notable point that, as there are more features embedded, the cost involved with it will also escalate accordingly.
Project’s timeline: Launching a completely secure as well as compliant ICO will require a considerable amount of time. This launch time is also based on the experts of the core team that is involved in the project. Hence, the timeline of a project plays a major role in deciding the cost.
ICO Ideation: Ideation is the eye of the storm when it comes to handling technologically sound processes. Prior to spending an enormous amount of capital, it is necessary to allocate a section of money for making the project fairly feasible. Even though ideation won’t cost that much, the process usually depends on the complexity of the project as discussed.
Technical architecture: Upon finishing up with ideation, the next major step is to implement a proper architectural framework. Since most of the potential expenses will be based on the technical aspects of development, the architectural framework plays a major role.
All the above mentioned factors are the predominant factors that influence the cost to launch an ICO crowdfunding event. By taking all these factors into account, the total cost required to launch an ICO will be decided. They are:
Cost to launch an ICO:
It is clear as daylight that ICOs are fairly popular among the crypto ecosystem with every passing day. ICOs(Initial Coin Offerings) have evolved to be the most preferred method of crowdfunding. When a monetizing process gets familiar amongst the business sector, the cost associated with launching the process should be considerable for entrepreneurs from multiple tiers.
In that regard, the cost of launching an ICO(initial coin offering) event is never a fixed one. The cost of all the features, as well as attributes with an ICO script, will vary. This variation will be based on the added subsidiary features. The level and degree of difficulty that comes while integrating multiple exclusive features will also play a major role in carrying out an ICO event. Therefore, it is safe to say that launching a fully functional ICO(initial coin offering) event will cost from $7k to $14k. This range will be based on the incorporated additional features that are embedded in the ICO script.
The cost for developing an ICO script will be considered valuable if the development process is done in a quality manner. In simpler words, an ICO script will be just as good as the developing quality. It is crucial to give the development process to the right hands.
Why choose ICOCLONE to launch an ICO?
Initially, in order to launch an Initial Coin Offering, one should hire hard-wired blockchain developers, whitepaper editors, SMM managers, web developers and designers to successfully create a website for the ICO. One must ensure that, apart from having to invest in the team, they should also consider the cost for registering the business. It is very natural to have options that assist with reducing cost and making ICO cheaper.
On the flip side, the current cryptocurrency ecosystem is filled with a lot of amateur script developers. The incompetency of an unskilled developer might cost you a fortune, but the result will still be shorthanded. As a result, it is highly advisable to approach the best ICO script provider in the crypto industry. Speaking about the best script provider, ICOCLONE has a team of highly skilled software developers. These pioneers of the cryptocurrency ecosystem are equipped with sound technical knowledge and expert blockchain development skills. Having such an elite group of professionals in your corner will be very useful in the long run.